Appropriations Process Will Continue in September

Congress decides funding levels annually for the primary federal programs that impact youth, young adults, and young families experiencing homelessness through the appropriations process.

The House and Senate Appropriations Committees have finished drafting most of their Fiscal Year (FY) 2026 appropriations bills. When they return to DC in September from the August recess, they will finish the rest of their appropriations bills and begin negotiating final versions.

On Thursday, July 31, the Senate approved their version of the FY 2026 Labor, Health and Human Services, Education, and Related Agencies (LHHS) appropriations bill and bill report that detail their proposed funding levels for the Runaway and Homeless Youth Act program (RHYA). This bill passed with strong bipartisan support.

After August recess, the House will release their version of the LHHS appropriations bill. The House’s funding recommendations will likely be quite different from the Senate’s. From there, the House and Senate will negotiate final spending levels.

An appropriations bill is the House or Senate’s proposal for next fiscal year’s funding. It’s usually released with an accompanying bill report (also known as an explanatory statement), which contains more details such as justifications for funding levels, breakdowns of how much should be spent on particular programs, and other directives to federal agencies.

• Senate’s FY2026 LHHS appropriations bill (the “bill,” their proposal for the new funding law).
• Senate’s FY2026 LHHS bill report (the “report,” further information about their appropriations bill).

The Senate’s bill and report includes many of the recommendations you helped us advocate for. Remember, these are not final—just their proposals. The House and Senate still have to debate on what the final appropriations bills and reports will be.

• Flat Funds RHYA (report table, page 214): $125.3 million for Basic Centers, Transitional Living Programs, Maternity Group Homes, and the national hotline; $21 million for Street Outreach Programs. This is the same level of funding as previous fiscal years.
• Specifies Funding Levels for RHYA (bill, page 100): As in previous years, the bill states that $14.9 billion should be available for a large bucket of programs, including RHYA. To make sure that the Department of Health and Human Services (HHS) funds these programs how the Senate wants them to, the Senate added a new directive in the bill, saying that HHS must follow the specific funding levels that are detailed in the report (report table, page 214).
• Restores the Street Outreach Program (report, page 216): The report states that HHS must “issue separate funding opportunities for the Street Outreach Program, Basic Center Program, Transitional Living Program, and Maternity Group Homes.” If enacted, that would restore the Street Outreach Program as a dedicated Notice of Funding Opportunity (NOFO).
• Protects Against NOFO Delays
  • In the bill (page 213): Dictates that NOFOs should be posted at least four months before the end of the current grant period, and that “every effort” should be made to award new grants no less than 30 days before current grants end. The bill also directs federal agencies to brief Congress on every NOFO that is delayed, and the agency’s plan to award the funds before the grant period ends.
  • In the report (page 216): Reaffirms the Senate’s commitment to “the importance of the timely release of notices of funding opportunities for the Runaway and Homeless Youth Act programs,” and dictates that NOFOs should be released according to the what the bill says (above).

The Senate LHHS bill also included proposals for FY2026 education funding levels:

• Flat-Funds McKinney-Vento Education for Homeless Children and Youth program (EHCY) (bill, page 147): $129 million. This is the same level of funding as previous fiscal years.
• Expands Allowable Uses of EHCY (report, page 274): Directs the Department of Education (ED) to allow EHCY funds to be used for emergency assistance to help students to remain in school, including hotel or motel stays.
• Protects Against Funding Delays (bill, page 174): Requires ED to release funding for programs, including EHCY, on time.
• Keeps Programs at ED (bill, pages 174-175): Prohibits ED from moving significant portions of education programs to other federal agencies and requires ED to maintain staffing at a level necessary to carry out the programs.

As with RHYA, these proposals are not final. The House must release their LHHS bill, and then both chambers will negotiate a final appropriations bill.

In July, both the House and Senate released their versions of the FY2026 Transportation, Housing and Urban Development, and Related Agencies (THUD) appropriations bill. The vote for the House bill was divided along party lines, with Republicans voting in favor and Democrats voting against. The Senate bill passed with strong bipartisan support.

The THUD bill dictates funding levels for the Department of Housing and Urban Development’s Emergency Solutions Grants, Continuums of Care, Youth Homelessness Demonstration Program (YHDP), and Youth Homelessness Systems Improvement grants (YHSI).

• House version approved July 17, 2025.
• Senate version approved July 24, 2025.

The House and Senate THUD bills propose different funding levels for FY2026.

No color: Same funding level as FY2025. Green: Increase from FY2025. Red: Decrease from FY2025.

Not yet. The House and Senate still have to negotiate final spending levels, beginning when they return from the August recess.

Additionally, the House’s proposal would only directly impact funding for new YHDP/YHSI projects. YHDP/YHSI projects that were funded in FY2024 or before should still receive continuation funding through their Continuum of Care.

We will let you know as advocacy opportunities come up to make sure that House and Senate negotiators know that preserving dedicated funding for YHDP and YHSI is important.

The House and Senate aren’t expected to continue the appropriations process until after the August recess, when they will be in their home districts and states for the whole month of August (this is a great time for you to schedule in-district meetings and site visits!).

Congress must pass spending bills by September 30 or else the government will shut down. It’s likely that they will pass short-term funding bills (continuing resolution) to buy themselves more time to negotiate final spending levels.

We will keep you updated as advocacy opportunities arise to protect funding for the programs that support youth experiencing homelessness. But for now, enjoy what could be a relatively quiet August.

• $304 million for the Runaway and Homeless Youth Act program administered by HHS.
  • Bipartisan House Dear Colleague Letter in support of increased funding for RHYA and EHCY.
  • Bipartisan Senate Dear Colleague Letter in support of robust funding for RHYA and EHCY.
• $200 million for the McKinney-Vento Education for the Homeless Children and Youth program administered by ED.
• $100 million for the Youth Homeless Demonstration Program administered by HUD.
• $25 million for the Youth Homelessness System Improvement grants.

Learn more about appropriations at the NN4Y Appropriations Take Action Page.